CALGARY - The Alberta Energy Regulator is apologizing for estimating it would cost $260 billion to clean up after the provincial oil and gas industry.

The sector's accumulated environmental liability is currently estimated at $58.65 billion, less than one quarter of the presented number, it said in a statement Thursday.

"The numbers are staggering — $260 billion in total liability, which is $200 billion more than we have consistently reported," it stated.

"This particular estimate was created for a presentation to try and hammer home the message to industry that the current liability system needs improvement. While the message to address liability is important, the numbers were not validated and were based on a hypothetical worst-case scenario.

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The Syncrude oil sands extraction facility is reflected in a tailings pond near the city of Fort McMurray, Alta. on Sunday, June 1, 2014. The Alberta Energy Regulator says it doesn't agree with a presentation given by a senior executive earlier this year that pegged the cost of cleaning up after the oil and gas industry at $260 billion. THE CANADIAN PRESS/Jason Franson

CALGARY - The Alberta Energy Regulator is apologizing for estimating it would cost $260 billion to clean up after the provincial oil and gas industry.

The sector's accumulated environmental liability is currently estimated at $58.65 billion, less than one quarter of the presented number, it said in a statement Thursday.

"The numbers are staggering — $260 billion in total liability, which is $200 billion more than we have consistently reported," it stated.

"This particular estimate was created for a presentation to try and hammer home the message to industry that the current liability system needs improvement. While the message to address liability is important, the numbers were not validated and were based on a hypothetical worst-case scenario.

"Using these estimates was an error in judgement and one we deeply regret."

The $260 billion is mentioned in speaking notes for a presentation in February by Robert Wadsworth, the AER's vice-president of closure and liability, as initially obtained by the National Observer after a request under freedom of information legislation

The AER provided the same documents to The Canadian Press on Thursday.

In a graphic illustrated by a huge cartoon bag of money, the presentation estimates Alberta's liabilities at $130 billion for mining projects, $100 billion for conventional oil and gas and steam-driven oilsands, and $30 billion for pipelines.

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